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Corsair uses an activity-based system and classifies overhead into three activity pools: Setup, Processing and Inspection. Activity rates for these activities are $100 per setup hour, $5 per machine hour, and $16 per inspection hour, respectively. Other information follows: Cost driver information Number of units per batch Setup time per batch Inspection time per batch Crystal Series 20 1.5 hours 0.5 hour Diamond Series 15 1.75 hours 0.6 hour Non-manufacturing fixed costs for August was $36,000, of which half are salaries. nonmanufacturing cost is sales commission, equal to 1% of sales revenue.

Corsair uses an activity-based system and classifies overhead into three activity pools: Setup, Processing and Inspection. Activity rates for these activities are $100 per setup hour, $5 per machine hour, and $16 per inspection hour, respectively. Other information follows: Cost driver information Number of units per batch Setup time per batch Inspection time per batch Crystal Series 20 1.5 hours 0.5 hour Diamond Series 15 1.75 hours 0.6 hour Non-manufacturing fixed costs for August was $36,000, of which half are salaries. nonmanufacturing cost is sales commission, equal to 1% of sales revenue.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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solve d, e and f only 

Corsair uses an activity-based system and classifies overhead into three activity pools: Setup, Processing and Inspection. Activity rates for these activities are $100 per setup hour, $5 per machine hour, and $16 per inspection hour, respectively. Other information follows: Cost driver information Crystal Series Diamond Series Number of units per batch Setup time per batch Inspection time per batch 20 15 1.5 hours 0.5 hour 1.75 hours 0.6 hour Non-manufacturing fixed costs for August was $36,000, of which half are salaries. Salaries are expected to increase 5% in September. The only variable nonmanufacturing cost is sales commission, equal to 1% of sales revenue. REQUIRED: Prepare the following for September: Direct manufacturing labour budget Manufacturing overhead budget Unit costs of ending finished good inventory d. e. f.
Transcribed Image Text:Corsair uses an activity-based system and classifies overhead into three activity pools: Setup, Processing and Inspection. Activity rates for these activities are $100 per setup hour, $5 per machine hour, and $16 per inspection hour, respectively. Other information follows: Cost driver information Crystal Series Diamond Series Number of units per batch Setup time per batch Inspection time per batch 20 15 1.5 hours 0.5 hour 1.75 hours 0.6 hour Non-manufacturing fixed costs for August was $36,000, of which half are salaries. Salaries are expected to increase 5% in September. The only variable nonmanufacturing cost is sales commission, equal to 1% of sales revenue. REQUIRED: Prepare the following for September: Direct manufacturing labour budget Manufacturing overhead budget Unit costs of ending finished good inventory d. e. f.
Corsair Gaming Company manufactures two ranges of computer cases, the Crystal Series and the Diamond Series. They are both made of plastic with metal frames, but the Diamond Series is larger. Information for the two ranges for the month of September is given in the following tables: Input prices Direct materials Plastic $4 per kilogram $6 per kilogram $20 per direct manufacturing labour hour Metal Direct manufacturing labour Input quantities per unit of output Crystal Series Diamond Series Direct materials 2 kilograms 0.5 kilogram Plastic 3 kilograms 1 kilogram Metal Direct manufacturing labour-hours (DMLH) Machine hours (MH) 3 hours 5 hours 10 MH 18 мн Inventory information, direct materials Plastic 125 kilograms 190 kilograms $950 Metal 30 kilograms Beginning inventory Target ending inventory Cost of beginning inventory 28 kilograms $180 Sales and inventory information, finished goods Crystal Series 500 $160 35 15 Diamond Series Expected sales in units Selling price Target ending inventory in units Beginning inventory in units 300 $250 15 30 Beginning inventory in dollars $1,500 $5,580 Corsair accounts for direct materials and finished goods inventory using a FIFO cost flow assumption.
Transcribed Image Text:Corsair Gaming Company manufactures two ranges of computer cases, the Crystal Series and the Diamond Series. They are both made of plastic with metal frames, but the Diamond Series is larger. Information for the two ranges for the month of September is given in the following tables: Input prices Direct materials Plastic $4 per kilogram $6 per kilogram $20 per direct manufacturing labour hour Metal Direct manufacturing labour Input quantities per unit of output Crystal Series Diamond Series Direct materials 2 kilograms 0.5 kilogram Plastic 3 kilograms 1 kilogram Metal Direct manufacturing labour-hours (DMLH) Machine hours (MH) 3 hours 5 hours 10 MH 18 мн Inventory information, direct materials Plastic 125 kilograms 190 kilograms $950 Metal 30 kilograms Beginning inventory Target ending inventory Cost of beginning inventory 28 kilograms $180 Sales and inventory information, finished goods Crystal Series 500 $160 35 15 Diamond Series Expected sales in units Selling price Target ending inventory in units Beginning inventory in units 300 $250 15 30 Beginning inventory in dollars $1,500 $5,580 Corsair accounts for direct materials and finished goods inventory using a FIFO cost flow assumption.
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